Tesla Avoids 30-Day California Sales Suspension After Dropping Autopilot

Got story updates? Submit your updates here. ›

The California Department of Motor Vehicles will not suspend Tesla's sales and manufacturing licenses for 30 days after the automaker stopped using the term 'Autopilot' in the marketing of its vehicles in the state. This settles a case that has been ongoing for nearly three years, where the DMV accused Tesla of deceptive marketing around its Autopilot and Full Self-Driving driver assistance systems.

Why it matters

This case highlights the ongoing regulatory scrutiny around Tesla's autonomous driving claims and the company's need to carefully manage the marketing and terminology used to describe its driver assistance features. The DMV's actions aim to ensure Tesla does not mislead consumers about the actual capabilities of its systems.

The details

In November 2023, the California DMV filed accusations that Tesla violated state law by using deceptive marketing of Autopilot and Full Self-Driving. An administrative law judge agreed with the DMV's request to suspend Tesla's sales and manufacturing licenses for 30 days as a penalty. To avoid the suspension, Tesla stopped using the 'Autopilot' term in its California marketing and also discontinued Autopilot altogether in the U.S. and Canada.

• In November 2023, the California DMV filed accusations against Tesla.
• In December, an administrative law judge agreed with the DMV's request to suspend Tesla's licenses for 30 days.
• In January 2026, Tesla discontinued Autopilot in the U.S. and Canada.
• On February 17, 2026, the California DMV announced it would not suspend Tesla's licenses.